Tag: Fed Govt

  • Fed Govt prepares for further crash in crude oil prices

    Fed Govt prepares for further crash in crude oil prices

    The Federal Government  has prepared additional measures to cushion the impact of the continuos fall in the price of crude oil and its effect on the economy, the Coordinating Minister for the Economy and Minister of Finance, Dr Ngozi Okonjo-Iweala, has said.

    Mrs. Okonjo-Iweala, who spoke yesterday in Abuja at the Launch of the Action 2015 program, where she had a dialogue with school children of 15 years of age.

    She denied claims that the Medium Term Expenditure Framework (MTEF) has been withdrawn from the National Assembly.

    “Let me just tell you that measures are being put in place so that we can manage the budget and the economy at whatever the oil price bottoms out. Right now no one knows the bottom because it’s falling everyday. Once it stabilises and we know the bottom, we will accompany it with appropriate measures. So we are working everyday with scenarios, we are following exactly the plan we told Nigerians.”

    She added that government has different scenarios for $55, $50 per barrel price of oil “and below that of the additional measures that will be needed and I believe that though this will be a very difficult year for the country, we have the tools, we know how to apply them and we know that working together, we will be able to take this country through this year and then to a brighter 2016.”

    The minister did not give details of the additional measures being planned, but indicated that 2015 would be a very difficult year for the economy, but with appropriate fiscal and monetary policy instruments, the government  “would manage the economy in a manner that would be beneficial to all.”

    Okonjo-Iweala noted that since the budget was submitted to the National Assembly, the government was monitoring developments in crude oil prices so as to come up with appropriate measures once the decline “bottoms out.”

    To assist the poor to cushion the impact of the difficult times, the Minister said government is building a platform on which it would assist those at the bottom of the pyramid.

    “We are doing something that is technological which is trying to give every Nigerian a smart-card and their generation will be the one to mostly appreciate this.

    “It will enable us to target those at the very bottom once they have a card to be able to help them with some assistance that can assure basic health care and their children being in school through a conditional cash transfer program, adding that the program is being put together by the  President.

    She explained that ‘Action 2015’ is an international movement to call for more attention in the area of fighting corruption, inequality and climate change, and it is based on the belief that 2015 can be a pivotal year that will change the future.

  • Fed Govt offers new bonds amidst dwindling demand

    Fed Govt offers new bonds amidst dwindling demand

    The Federal Government will today launch the first tranches of its bond issues for this quarter, as the government seeks to raise some N305 billion over the next three months.
    The Debt Management Office (DMO), the Federal Government agency that manages sovereign debt issues, is scheduled to offer three tranches of bonds today, according to an issuance schedule made available to market operators.
    The bond issues, which are re-opening of previous issuance, are expected to raise about N73 billion, about a quarter of government’s target for the quarter. The bonds to be offered at today’s auction included the N24 billion 15.10 per cent FGN April 2017 bond, the N25 billion 14.20 per cent FGN March 2024 bond and N24 billion 12.1493 per cent FGN July 2034 bond.
    In order to encourage retail investors and broaden investors’ participation, the bonds will be offered with a minimum subscription of N10, 000 and in multiples of N1, 000 thereafter. A unit costs N1, 000.
    While the issuance today consists entirely of re-opening, DMO is expected to launch a new five-year instrument sometimes in February.
    The new bond issues come amidst notable decline in demand for sovereign bonds. Analysts at FBN Capital noted that demand for government bonds had fallen below supply in the previous quarter.
    The DMO had raised N182 billion in the fourth quarter of 2014 as against its targets of between N195 billion and N285 billion.
    “It has a new challenge in that investor fatigue for auction participation has emerged,” FBN Capital stated in a review of this quarter issuance progamme.
    According to analysts, DMO has the unenviable task of rolling out bond issuance calendar when there is no approved 2015 budget and there may not be any one until after the February elections.
    Analysts attributed the slowdown in demand for sovereign bonds to attractive rates on money market instruments as well as tight monetary policy and macroeconomic worries due to pressure on crude oil price and Naira.
    There are expectations that the Federal Government may overshoot its proposed budget deficit of N722 billion in 2015, raising the possibility of larger bond issuance.
    Analysts at Afrinvest Securities Limited said the current macroeconomic scenario suggests possibility of a higher deficit than anticipated in 2015 citing the declining crude oil price and the vulnerability of the non-oil revenue mobilization.
    According to analysts, with a new floor yet to be established, there is the possibility of crude oil prices declining, which will undermine Nigeria’s budget benchmark and pose major challenge to budget performance during the year.
    Analysts noted that in the scenario that oil prices do not recover to a minimum of $65 in 2015, Nigeria’s budget benchmark price, government may incur larger deficits than the previously estimated sum of N755 billion.
    The 2015 Budget indicates net federally collectible revenue of N6.9 trillion, with a total of N3.6 trillion envisaged to fund the FGN 2015 Budget, representing about 3.4 per cent drop from N3.7 trillion for 2014 Budget. Details of aggregate budget revenue of N3.602 trillion included oil revenue of N1.92 trillion and non-oil revenues of N1.68 trillion. This represented a ratio of 53 percent oil revenues to 47 percent non-oil revenue.

     

     

  • Fed Govt lists 13 export products  as replacement for crude oil

    Fed Govt lists 13 export products as replacement for crude oil

    The Federal Government has listed “13 National Strategic Export Products” to replace crude oil.

    The Minister of Industry, Trade and Investment, Olusegun Aganga who stated this,  said  the move is intended to revive the ailing national economy with emphasis on rapid growth of the non-oil sector for exports.

    Aganga who spoke when he visited the Chief Executive, Nigeria Export Promotion Council (NEPC),  Olusegun Awolowo in Abuja, said with the wind of transformation blowing across the 13 products, they are good replacements for crude oil in the market.

    He said: “The 13 products are Agro-industrial- palm oil, cocoa, cashew, sugar and rice; Mining Related- cement, iron ore/metals; Auto parts/cars, aluminium and oil and gas industrial products; Petroleum products, fertiliser/urea, petrochemical and methanol.

    “NEPC has the capacity to kick-start the diversification of the country’s economy. I chose NEPC and SMEDAN for my first visit in the New Year because of their potential and strategic importance for diversification of the economy, job creation, poverty alleviation and inclusive growth.”

    The strategy to be deployed in this regard, according to him, requires that NEPC identifies products that are being imported by countries from other exporting nations and develop the products with sound logistics built around them. As an export oriented investment strategy, the products will be delivered to those neighbouring countries at cheaper rates.

    Aganga said: “In doing this, we must recognise our neighbors’ developmental needs, support them and collaborate with them in areas of their comparative advantage. For you to have sustainable relationship, the relationship must be symbiotic.

    “The new strategic focus is not just agriculture but rather commodities based-industrialisation. This will help our economy to diversify quickly and sustainably. “Such strategy will help build industrial sector that can diversify our economy in just few years.”

    The minister urged NEPC  to work towards earning big income for Nigeria by focusing on products and services that will yield quick results in few years with a view to assisting Nigeria earn foreign exchange.

    Awolowa said NEPC, under his leadership, had long recognised the need to develop the non-oil export sub-sector and had in the process held series of strategic meetings with stakeholders for the development of ideas aimed at improving the foreign exchange earnings of the country through different avenues.

    These, he said include, the development of a Four-Year Strategic Plan, One State One Product (OSOP), Nigerian Diaspora Export Programme (NDEX) and the development of New Markets for New Products.

  • Fed Govt rakes in over N586b in Lagos, Imo

    The Nigeria Customs Service (NCS) generated N586.8 billion in Lagos and Owerri last year, records have shown.

    According to the records, N585 billion was generated in Apapa and Tin-Can Island ports in Lagos; the balance was made by the Federal Operations Unit (FOU) Zone ‘C’ Owerri.

    The Apapa command recorded N301,272,187,970, and Tin Can Island, N284,290,462,153.

    The (FOU) Zone ‘C’ made 363 seizures of illegally imported goods with a Duty Paid Value (DPV) of N1,805,843,064 and generated N71,762,029 as under payment.

    Its Area Controller, David Dimka, said the seizures made last year were higher than 2013’s.

    The command, he said, arrested 104 suspects with over 100 cases in  court. The number of those arrested last year, the controller said, was higher than the 31 suspects arrested in the previous year – 20 cases of which are in court.

    Dimka said 237 smuggled vehicles topped the list of the seized items; 209 of them had fake Customs paper while 28 were abandoned by the smugglers.

    The highest numbers of seizures, he said, were recorded in April, September and December last year.

    Dimka praised the Comptroller-General of Customs, Alhaji Abdullahi Dikko, for the support  he gave to his officers, saying it motivated them in the discharge of their duties.

    He warned smugglers to desist from their nefarious activities, warning that he would deal with them.

    The Public Relation Officer (PRO) of the command, Ifeoma Onuigbo, said officers and men of the command would carry out intensive patrol this year, assuring that her colleagues would tackle smuggling.

    Also, the increased revenue in Apapa and Tin-Can Island ports was attributed  to the quality leadership of their Area Controllers.

    The introduction of the Pre-Arrival Assessment Report (PAAR) and quality leadership, it was gathered, also contributed to the increase.

    The crisis generated by the new auto policy introduced last year had no negative effect on their revenue, it was learnt.

     

  • Fed Govt to bring back national development plans

    Fed Govt to bring back national development plans

    THE National Planning Minister, Dr. Abubakar Sulaiman, said yesterday that the Federal Government will soon bring back the National Development Plan to  ensure  sustainable infrastructural development.

    The minister spoke through the commission’s Acting Secretary, Bassey Akpanyung, at a one-day media workshop on “Strategic, sustainable promotion and marketing of the National Integrated Infrastructure Master Plan (NIIMP).”

    Sulaiman said returning the National Development Plan was part of government’s strategy to develop the nation’s infrastructure.

    He noted that the best infrastructure the nation has had since independence were captured in the first four development plans, which were terminated in the middle 1980s.

    According to him, what the country has started with Vision 20-2020, Medium Term Expenditure Framework and the Transformation Agenda is to return the country to the “golden tradition of infrastructural development”.

    The minister said: “In pursuance of the ideal of sustainable development, the administration adopted integrated and all inclusive approach to infrastructure delivery as practiced in some other industrialised nations, to systematically facilitate and promote economic growth and development.

    “For us as a government, we are convinced that the NIIMP, if effectively implemented, will give us a win-win situation. In effect, government understood the NIIMP itself, as a source of massive job opportunity and wealth creation in a manner that recognise equity as well as promotes poverty reduction. However, this can be achieved through the cooperation of all the stakeholders.

    “Construction of infrastructure projects across the geo-political zones and linking different sectors potentially translate to economic growth and prosperity.”

    He noted that in the struggle to market “the unique investment opportunities NIIMP connotes, the foremost among the strategic stakeholders is the media.”

  • Fed Govt’s betrayal of conscience

    Fed Govt’s betrayal of conscience

    Nigeria’s Federal Government openly traded off its dignity in what amounted to a betrayal of conscience penultimate Tuesday night (December 30, 2014). This occurred at the United Nations Security Council meeting where voting on a proposed resolution to stop the perennial Israeli occupation of West Bank area of Palestine took place.

    The proposed resolution was to be an historic anticlimax of the 66-year-old Israeli/Palestinian conflict with a view to paving way for a two-nation solution. If passed, the resolution would have ventilated a peaceful atmosphere for the Middle East and by implication, the entire world.

    In the YES or No voting of the 15 member-nations of the Security Council, nine votes were required as the simple majority to determine the liberation of the Palestinian people from the political and economic siege of Israel.

     

    Voting pattern

    Out of those 15 member-nations, eight voted in favour of the liberation while two voted for continuous Israeli siege on Palestine. The eight nations that voted for the latter’s liberation were Argentina, Chad, Chile, China, France, Jordan, Luxembourg and Russia. Those that voted against liberation were the United States and Australia.

    The five remaining countries that opted for abstention were Lithuania, South Korea, Rwanda, Britain and Nigeria. Incidentally, two years prior to this stage of determining the fate of the Palestinians (2012), Nigeria’s permanent representative at the United Nations, Prof Joy Ogwu, had glowingly supported the inalienable right of the Palestinian people to self-determination and statehood and reiterated Nigeria’s recognition of the State of Palestine. That was one year after Nigeria confirmed her diplomatic relation with Palestine on October 31, 2011. And definitely acting on the instruction of her home government, Professor Ogwu at that time voted in favour of the admission of Palestine into UNESCO as a full member-state, despite a fierce opposition from the US and Israel.

    During her speech at the UN General Assembly in 2012, Prof Ogwu underscored the right of the Palestinians to live in freedom thus: “It was quite fitting that the international community had given Palestine a non-member observer state status in the United Nations. This was not only timely but also right and just.” She then went ahead to pledge Nigeria’s commitment to working towards Palestine’s admission into the United Nations as a full member state.

     

    Dramatic u-turn

    But dramatically, when the matter came up on December 30 2014, Nigeria suddenly made a u-turn that held the entire diplomatic world nonplussed. Rather than living by her words as a dignified nation, she shamelessly cheapened out and threw her conscience to the winds apparently in return for a clandestine agenda yet to be fathomed.

    Thus, to the amazement and perhaps disappointment of most members of the Security Council, including those that voted to block the Palestinian right to a home, Nigerian government betrayed that glory as its negative decision became pivotal to UN’s rejection of the long awaited resolution that would have brought peace to the Middle East.

    The implication of this is that with the blocking of peace in the Middle East in which Nigeria played a principal role, the rest of the world, including Nigeria cannot sleep with both eyes closed for now.

    This is because, the Middle East conflict especially between Israel and Palestine has been the major determinant of global peace or otherwise since 1967 when Israel, aided by the imperialist West, further occupied the Arab lands which she has since consistently refused to relinquish thereafter despite all efforts.

    Before the voting, the anxiety created by the impending abstention of certain member-states had put a global diplomatic focus on Nigeria being an African champion of liberation movements in the past. It will be recalled that Nigeria’s role in championing the cause of liberation especially for African countries before now was legendary.

    The tenacity of such role (during the cold war years) as a vital part of Nigeria’s foreign policy that aided the independence of countries like South Africa, Angola, Zimbabwe, Namibia, Algeria and others had once pitched the country against the imperialistic tendencies of some Western countries.

     

    How Nigeria broke

     relation with Israel

    It was against such imperialistic tendencies that Nigeria’s Federal Government under General Yakubu Gowon broke diplomatic relations with Israel for 19 years from 1973 to 1992 when the Military President Ibrahim Babangida restored that relation. In those years, religion was not at all in consideration as the issue of liberation was seen purely as a humanitarian affair which deserved human feeling rather than sheer political contention or religious sentiment.

    If religion had been at the front burner of Nigeria’s foreign policy, General Yakubu Gowon, a Christian, would not have taken Nigeria into the Organisation of Islamic Conference (OIC) in observer status in 1969 and General Ibrahim Babangida, a Muslim, would not have restored Nigeria’s diplomatic relation with Israel in 1992 after 19 years of break (since 1973).

    Thus, through her consistency in human face foreign policy, Nigeria had earned tremendous prestige in the comity of nations and this had earned her the appellation of ‘Giant of Africa’ which she still enjoys today as a special privilege.

    Now, by deviating from that highly prestigious foreign policy and by pitching its tent with the imperialist countries the government seems to have sacrificed conscience on the platter of unwarranted and irrelevant religious sentiment which is a reflection of the situation at home in Nigeria under the current regime.

    This may be linked to fortuitous diplomatic visit of Israeli Foreign Minister Avigdor Lieberman to Nigeria among other African countries in June 2014 in preparation for the unfortunate betrayal for which the Israeli Prime Minister Benjamin Netanyahu thanked and praised President Goodluck Jonathan for a job well done.

    Nevertheless, Nigerians are urged to overlook the embarrassing diplomatic goof and wait for another chance bearing in mind that no diplomatic policy is permanently static. God bless our country!

     

    Clarification on

     published fables

    In a front page lead story (without a by-line) published in Sunday Tribune of December 28, 2014 and entitled ‘Division Within Core North Widens’, the Ibadan-based newspaper claimed that “the elite and opinion leaders among the Hausa-Fulani stock are split down the line about who to support between the two major contenders (President Goodluck Jonathan and General Muhammadu Buhari).

    The newspaper went further to state that “the elites who lined up behind General Buhari included the Sultan of Sokoto, Alhaji Sa‘ad Abubakar, who is leading some northern Emirs; 11 Arewa turks, led by former minister Mallam Nasir El-Rufai; four core northern Governors led by Rabiu Musa Kwankwaso of Kano State and a loose coalition of clerics said to be linked to various street groups across the northern region ……..”

     

    Fabricated news story

    Under the same news headline, Sunday Tribune came up with a sub-heading entitled ‘South-West Muslim Council Backs GEJ’, and quoted one Mallam Hakeem Adelani who it called the Secretary-General of the ‘Muslim Council’ as saying that since ‘Yoruba Muslims were not goats and rams’ they would rather vote for Jonathan than Buhari’.

    The quoted fake secretary was also reported to have said that a mosque-to- mosque campaign would soon commence in the region to sensitise the Muslim Ummah towards the clandestine political agenda of some evil politicians who want to use the name of Islam for their evil machinations.

    The concern of the Muslim Ummah of Southwest Nigeria (MUSWEN) here is not about Nigeria’s political murky water in which some dirty elements in the society are swimming, but about the smearing tendency of some dirty minds in the region who think they can drag Islam and some highly placed Nigerian Muslims into their murky water. In view of the above, therefore, the following clarifications are necessary:

    The Role of MUSWEN

    The Muslim Ummah of Southwest Nigeria (MUSWEN) is the main umbrella of all the Muslim organisations in the Southwest and it does not have the so-called ‘Muslim Council’ (of no particular state) on its membership list.

    MUSWEN is the only Muslim body authorised to speak for the entire Muslims in the Southwest through its Executive Secretary, Prof D.O.S. Noibi or its Media Consultant, Alhaji Femi Abbas.

    Any other person or persons claiming to be speaking on behalf of the Southwest Muslims without the authorisation of the above mentioned duo can only be a fraudster using a Muslim name to tarnish the image of Islam in the region.

    The fictitious name called Hakeem Adelani said to be the Secretary-General of   the Council is not known to MUSWEN or recognised by any of its member organisations in the region.

    MUSWEN is neither a political body affiliated to any political figure or party in the country nor is it involved directly or indirectly in Nigerian partisan politics.

    As a credible religious body which fervently believes in freedom of expression and association, MUSWEN has never and will not be involved in partisan politics let alone influence the electorate’s voting rights along religious line.

    The frivolous statement published by Sunday Tribune in the name of the Southwest Muslims is therefore a mere fabrication by enemies of Islam aimed at subjecting the name of the highly revered religious body to ridicule.

    Consequently, MUSWEN calls particularly on all Muslims in the Southwest and the country in general to ignore the insensitive and irresponsible statement reported in the cited Sunday Tribune and credited to a fictitious Mallam Hakeem Adelani who may be non-existent in reality.

    Meanwhile, MUSWEN hereby calls on the Federal Government once again to urgently address all forms of insecurity in the land with particular attention to the socio-economic sources of unrest by taking bold and practical steps towards stamping out corruption and indiscipline through the leadership’s personal examples and thereby strengthen God’s consciousness in all Nigerians.

    Finally, MUSWEN admonishes all Nigerian politicians to refrain from heating up the polity through incendiary utterances and public actions in their campaigns towards the elections that will begin in February 2015 and remember that there can be a Nigeria to be called their country only if there is peace. God save Nigeria!

     

    The ranting of a dubious cleric

    “A man who does not wear dignity as a dress cannot proclaim dignity by demand through sheer bravado” By an Arab poet.

    Self-respect is like a glass house. Anybody who values it will surely not throw out a stone from it. And when a pig decorated with a valuable ornament takes it to a refuse place it must not be a surprise. Refuse bin is the natural habitat of the pig.

    Nigerian Muslims should not be bothered by a recently published ranting of a so-called Nigerian cleric leader of the Christian faith whose antecedent is very well known. In the two parts publication in a Nigerian national newspaper last Friday and last Monday, the self-glorified irritant turned himself into a Mr. know all and quoted the Qur’an copiously out of context giving it a drunkard’s interpretation to incite Nigerian Christians against Nigerian Muslims.

    The megalomaniac wanted Nigerians to believe that the only way of ‘curbing insurgency’ in the country is to either wipe out the Qur’an from existence or edit it to suit his own satanic thinking.

    In his devilish search for a solution to insurgency, after a long, unwinding rigmarole typical of an evident ignoramus, he concluded that unless the Qur’an is edited to suit his own parochial way of amassing devilish wealth in a typical capitalist manner, the world would not know peace. To him, Qur’an (which has been in existence for over 1400 years) is the main cause of the five year old insurgency in Nigeria.

    Such an evil conclusion by a criminally avaricious agent of devil cannot surprise any sane person. Some recent exposures about his clandestine activities have confirmed his satanic tendencies.

    Rather than compounding a fundamental national problem like insurgency with a satanic solution this self-appointed public tutor should have explained to Nigerians his own role in the recent illegal currency trafficking that caused a face-off between Nigeria and South African.

    The total amount of money said to be involved in that devilish deal was $15 million. This is not the right time for any diversionary tutoring. But since people who are not related to relevance often recourse to irrelevances as a proof of their existence, the diversionary tactics can be understood even as the commercial cleric needs to be pitied. However, for the benefit of relevant information and knowledge about the divine Book called the Qur’an, a full reaction to that provocative, inflammatory outburst will be published in this column in a foreseeable future, in sha’Allah.

  • Fed Govt plans strategies to boost agric

    Fed Govt plans strategies to boost agric

    the federal Government may unveil some strategies to boost agriculture this year, it has been learnt.

    A source told The Nation that the government would improve funding to agriculture to enhance productivity, market linkages and access to e-extension technology.

    According to the source, there are plans to improve the private sector distribution of seeds and fertiliser, expand irrigation farming, and introduce crop and livestock insurance policies. The mechanisation policy under the agricultural transformation agenda, which began last year with Zamfara State, is expected to extend to more states this year. It will provide subsidised services to poor farmers to cultivate more land and produce more food. The move, the source maintained, is necessary to stimulate investments in agricultural transformation and food security and strengthen the country’s ability to achieve sustainable production following the falling oil price.

    The  source  expressed the  concern of  the  government about high cost of production in agriculture sector, that the needs to be reduced, erratic rains, a rapidly expanding population to feed, low commodity prices, competition from other sectors, unethical trade practices and poor management, ensuring  that  these bottlenecks would be addressed and growth attained as an all-inclusive approach will be employed in the  year to fully exploit the sector’s potential and maximise farmers’ earnings.

    Despite the setbacks faced last year, the source disclosed, the sector still recorded growth, food price stability resulting from increase in the quantum of food produced, adding that this year’s key tactic would be to ensure farmers spend less to produce more.

    This, he said, would be driven through the Public Private Partnership (PPP) framework and continued efforts at working with the state governments to confront the challenges facing farmers. The implementation of Staple Crops Processing Zones will create more farm jobs, attract more rural infrastructure and ensure easier aggregation of farm produce at less cost per unit.

    Focusing on youth, government will build on the launch of Youth Employment in Agriculture Programme (YEAP) to reach more educated youth within the set target of 740,000 to 750,000 all across the country, to entrench the transformation of the sector by supporting the youth to establish and run viable agribusiness enterprises that will add significantly to food production in Nigeria.

  • Fed Govt: we didn’t squander external reserve

    Fed Govt: we didn’t squander external reserve

    The Federal Government has denied allegations by former President Olusegun Obasanjo that it squandered the country’s foreign reserve.

    In a statement yesterday the federal ministry of finance said: “It is absolutely not true that the Administration of President Goodluck Jonathan has squandered the nation’s reserves.”

    The ministry noted that “facts are clear and indisputable. At the end of May 2007, Nigeria’s gross reserves stood at $43.13 billion – comprising the CBN’s external reserves of $31.5 billion, $9.43 billion in the Excess Crude Account, and $2.18 billion in Federal Government’s savings.”

    This fall in reserves, the ministry explained, “was largely a result of the vicissitudes of the global economy and oil market which caused the CBN to intervene, using some of the reserves, to defend the value of the Naira”.

    The ministry said: “It is not correct to say that the nation’s external reserves were dipped into or misapplied by the Administration. Anyone familiar with foreign reserves management will be aware that the Federal Government cannot dip its hands into the external reserves. Like in other countries, the management of external reserves is one of the statutory mandates of the Central Bank of Nigeria (CBN). Section 2 sub-section (c) of the CBN Act (2007) states that the Bank shall “maintain external reserves to safeguard the international value of the legal tender” – in other words, to defend the value of the Naira. No President since the democratic dispensation has contravened this Act.”

     The reserves it added was used to settle both public and private sector foreign currency obligations, “including the importation of goods such as equipment for power sector. Whenever an agency of government or a private individual/company needs to make a payment in foreign currency (e.g. payment of goods and services, settlement of external debt, etc) it must provide the naira equivalent to the CBN in exchange for the required foreign currency.

    “The reality is that since May 2007, the reserves have fluctuated in line with developments in the international oil market, rising from $43.13 billion at that time, peaking at $62 billion in September 2008 during the Yar’adua/Jonathan Administration when oil prices reached a peak of $147 per barrel, and falling subsequently to a low of $31.7 billion in September 2011.

    “Nigeria’s reserves during the period were not squandered but used appropriately in the course of normal transactions required for the development of the Nigerian economy.”

    On the Excess Crude savings, the ministry said it is a component of the reserves, which “was largely used to cushion the economy at the height of the global financial crisis in 2008-2009. As a result, Nigeria was one of the few countries in the world that did not seek assistance from international financial institutions at that time.

    “Similarly, savings in the ECA were also used to pay for fuel subsidies for the entire nation and that sharing continued after the crisis ended.  Starting in 2012, such payments have been published each time they are made.

    “The savings in the ECA would now have been higher but for the fact that a number of Governors, against strong professional advice, actively kicked against continuous building up of the ECA and, indeed, pushed for its sharing. It is on record that states even took the Federal Government to court on this matter, and the case is still pending at the Supreme Court.”

    The ministry noted that the Jonathan administration built the first ever Sovereign Wealth Fund (SWF) for the nation in which savings are being made for future generations of Nigerians.

  • Fed Govt blames Borno blackout on sabotage, insurgency

    Fed Govt blames Borno blackout on sabotage, insurgency

    The Minister of State for Power, Alhaji Mohammed Wakil, yesterday blamed the prolonged outage in Borno State on sabotage and insurgency.

    In a statement in Maiduguri, the state capital, by his Special Assistant on Media, Mr Olawale Rasheed, the minister of state said the Federal Government had made several attempts to restore power supply, which was cut off last June in a suspected terror attack on the Damboa power sub-station.

    He said: “The Federal Ministry of Power has repeatedly moved to reconnect Maiduguri to national grid but insurgency and sabotage have delayed the realisation of that goal.

    “In the last seven months, when the power lines and sub-station at Damboa were attacked, the ministry, through the Transmission Company of Nigeria (TCN), made at least seven attempts to rectify the problem. But on each occasion, the officials were attacked.”

    The statement said two other attempts to restore power were successfully accomplished with parts of Maiduguri enjoying power supply.

    It noted that the power supply was short-lived as the lines were again vandalised less than five hours after.

    The statement said the development prompted the ministry of power to seek assistance from the military on reconnection.

    It stressed that Wakil, at a meeting with military chiefs, requested for special security cover which was granted and this led to the latest attempt by the ministry to reconnect the state.